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44 Reasons Why Companies Don't Make It
- A lack of control over cash flow
- Failure to control costs ruthlessly
- Diminished cash balances
- Over-reached overdraft facilities
- Under-capitalisation
- Bad debts
- Bad management of the capital available
- General rise in costs
- Bad financial management
- Too heavy reliance on grants
- Rising work-in-progress that is not billed on time
- The business widening its range of suppliers simply to make more credit available
- Final demands and writs being received
- Borrowings being increased just to keep the business running
- Personal extravagance
- Over trading
- Fatal leasing agreements
- Fraud
- Loss of financial backing
- Rising stock levels and static sales
- Failure to pay crown taxes (PAYE and VAT) on time
- Poor management
- Lack of long-standing relationships with suppliers
- Contract disputes
- Bad labour relations
- Unsuitable people starting small businesses without the skills or resources they need to succeed
- Companies finding that staff set up as rivals and stealing the business
- Legal disputes
- Failure to build a team that is compatible and has the skills to finance, produce sell and market
- Failure to focus on a specific market because of poor research
- Failure to adapt your product to meet customer needs
- Failure to carry out decent market research
- Failure to gain new markets
- Tougher market conditions than anticipated
- Loss of market
- A lack of orders
- Marketing problems
- Poor quality of product or service
- Niche businesses - These suffered from narrow customer and supplier bases and an inability to react to changes in the market
- Under pricing
- Companies diversifying into new, unknown areas without a clue about costs
- The business being reliant on one or two customers which do not pay as well as they used to
- A failure to plan ahead, beyond the day-to-day running of the business
- Merely attempting stability, businesses which did not try to grow didn't survive
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